China Petrochemicals Report Q1 2015

BMI View: Growth in coal-based polymer production risks creating a glut in supply in 2015 as domesticdemand moderates, leading to a decline in prices and pressure on margins, according to BMI's latestChina Petrochemicals Report.

The January to October period of 2014 saw ethylene output growth lag behind the growth in crackercapacity, leading to a reduction in overall capacity utilisation which was running at around 70% in2014. Revenue is rising, but not as fast as hoped due to the market downturn. China's petrochemicalindustry turnover hit CNY14.5trn (USD2.36trn) in 2014. Exports rose 6.2% to USD513.3bn in the firstthree quarters of 2014.